Japan's main share index finished above its psychologically important 11,000 point mark for the first time in 15 months this week. Tokyo's Nikkei 225 gained 2 percent over the week to close on Friday at 10,938.

Despite the fact that the Tokyo index lost less than 1 percent on Friday in what traders called a 'technical correction,' the Nikkei remained near Thursday's 15-month closing high of 11,033.

Toshihiko Fukui, governor of the Bank of Japan, says Japan's brighter economic outlook is being led by an increase in demand for exports.

But he says he does not think the domestic demand will recover as quickly.